VER finds support at 20-day moving average
VEREIT Inc. (VER) Technical Analysis Report for Aug 07, 2020 | by Techniquant Editorial Team
VER ended the week 0.31% higher at 6.53 after losing $0.05 (-0.76%) today on high volume, underperforming the S&P 500 (0.06%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (VER as at Aug 07, 2020):
Friday's trading range has been $0.15 (2.3%), that's far below the last trading month's daily average range of $0.23. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for VER. Prices continued to consolidate within a tight trading range between 6.32 and 6.68 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Hanging Man which is known as bearish pattern and one neutral pattern, the Doji. The last time a Hanging Man showed up on June 10th, VER lost -8.55% on the following trading day.
After trading as low as 6.40 during the day, VEREIT found support at the 20-day moving average at 6.43. Prices are trading close to the key technical resistance level at 6.64 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 6.68 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 6.32 where further sell stops might get triggered. Further buying could move prices higher should the market test July's close-by high at 6.75.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Its common bearish interpretation has been confirmed for VEREIT. Out of 85 times, VER closed lower 55.29% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 62.35% with an average market move of -1.11%.